17:49 Oct 20, 2011 

1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes.

2. A decrease in an asset’s value caused by unfavorable market conditions.

1. For accounting purposes, depreciation indicates how much of an asset’s value has been used up. For tax purposes, businesses can deduct the cost of the tangible assets they purchase as business expenses; however, businesses must depreciate these assets in accordance with IRS rules about how and when the deduction may be taken based on what the asset is and how long it will last.

Depreciation is used in accounting to try to match the expense of an asset to the income that the asset helps the company earn. For example, if a company buys a piece of equipment for $1 million and expects it to have a useful life of 10 years, it will be depreciated over 10 years. Every accounting year, the company will expense $100,000 (assuming straight-line depreciation), which will be matched with the money that the equipment helps to make each year.

2. Currency and real estate are two examples of assets that can depreciate or lose value. During the infamous Russian rubl

17:48 Oct 20, 2011 

A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues.
For example, if you spend money on dinner to take out a client, that meal is a possible write-off towards your income because you presumably discussed business opportunities during the dinner.

Suppose, for another example, you made a sale on credit to a customer, but two weeks later the client's business declared bankruptcy and became completely unable to pay off the credit account with you. This uncollectible debt would then be written-off by your company and recorded as an expense by accountants.

09:52 Oct 20, 2011 

Well I did not come up with this... it is just what is used
Enhanced write-offs for depreciating assets
Perhaps another peer member could comment on this it would be much appreciated

09:38 Oct 20, 2011 

Enhanced is questionable since it is time-related/ is accelerated not better?

09:20 Oct 20, 2011 

Degressiivinen poistomenetelmä tai etupainoinen poisto:

Geometris-degressiivinen: poistoprosentti on vakio ja vuotuinen poisto tehdään tämän prosentin mukaan poistamatta olevasta hyödykkeen hankintamenosta tai sen osasta eli menojäännöksestä (menojäännös-, jäännösarvopoisto). Poistot muodostavat tässä geometrisesti alenevan sarjan. Poistot ovat näin ollen etupainoisia.

Accelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' and/or tax purposes, depreciates a fixed asset in such a way that the amount of depreciation taken each year is higher during the earlier years of an asset’s life. For financial accounting purposes, accelerated depreciation is generally used when an asset is expected to be much more productive during its early years, so that depreciation expense will more accurately represent how much of an asset’s usefulness is being used up each year. For tax purposes, accelerated depreciation provides a way of deferring corporate income taxes by reducing taxable income in current years, in exchange for increased taxable income in future years

09:14 Oct 20, 2011 

assets.

For financial reporting purposes, the two most popular methods of accelerated depreciation are the declining balance method and the sum-of-the-years’ digits method. For tax purposes, the allowable methods of accelerated depreciation depend on the tax law that the taxpayer is subject to. In the United States, the two currently allowable depreciation methods for tax purposes are both accelerated depreciation methods (ACRS and MACRS).

08:07 Oct 20, 2011 

Accelerated depreciation for investment in production facilities